The study was based on an external pilot-scale membrane bioreactor (MBR) with a ceramic membrane compared to a conventional activated sludge process (ASP) plant. Both systems received their influent from domestic wastewater. The MBR produced an effluent of much better quality than the ASP in terms of total suspended solids (TSS), 5-day biological oxygen demand (BOD5) and chemical oxygen demand (COD), total phosphorus (TP) and total nitrogen (TN). Other effluent quality parameters also indicated substantial differences between the ASP and the MBR. This study leads to the conclusion that in the case of domestic wastewater, MBR treatment leads to excellent effluent quality. Hence, the replacement of ASP by MBR may be justified on the basis of the improved removal of solids, nutrients, and micropollutants. Furthermore, in terms of reuse the high quality of the treated water allows it to be reused for irrigation.